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Poste Italiane S.p.A. (PST.MI)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$64.08 - $328.74$130.89
Multi-Stage$49.30 - $53.97$51.59
Blended Fair Value$91.24
Current Price$20.19
Upside351.91%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS8.52%8.83%0.900.680.620.510.470.600.420.390.340.19
YoY Growth--31.94%10.24%21.00%7.99%-20.80%40.98%7.86%14.64%77.60%-50.00%
Dividend Yield--5.48%5.92%6.58%4.96%4.37%7.75%4.90%5.30%5.49%2.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,166.00
(-) Cash Dividends Paid (M)1,409.00
(=) Cash Retained (M)757.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)433.20270.75162.45
Cash Retained (M)757.00757.00757.00
(-) Cash Required (M)-433.20-270.75-162.45
(=) Excess Retained (M)323.80486.25594.55
(/) Shares Outstanding (M)1,294.081,294.081,294.08
(=) Excess Retained per Share0.250.380.46
LTM Dividend per Share1.091.091.09
(+) Excess Retained per Share0.250.380.46
(=) Adjusted Dividend1.341.461.55
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate4.17%5.17%6.17%
Fair Value$64.08$130.89$328.74
Upside / Downside217.38%548.30%1,528.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,166.002,277.902,395.582,519.332,649.482,786.362,869.95
Payout Ratio65.05%70.04%75.03%80.02%85.01%90.00%92.50%
Projected Dividends (M)1,409.001,595.451,797.412,015.982,252.332,507.722,654.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate4.17%5.17%6.17%
Year 1 PV (M)1,486.031,500.291,514.56
Year 2 PV (M)1,559.311,589.391,619.76
Year 3 PV (M)1,628.971,676.341,724.61
Year 4 PV (M)1,695.131,761.161,829.11
Year 5 PV (M)1,757.891,843.911,933.26
PV of Terminal Value (M)55,669.6158,393.5761,223.13
Equity Value (M)63,796.9466,764.6669,844.43
Shares Outstanding (M)1,294.081,294.081,294.08
Fair Value$49.30$51.59$53.97
Upside / Downside144.17%155.53%167.32%

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